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The name "Chalakudy" is derived from two words "Yagashala" (temporary settlement for conducting sacrifices) and "kody" (flag). Once Chalakudy was famous all over India as a place for conducting sacrifices. Many "rishis" (including Saptarshis) used to come over here as it was considered as a sacred land. In order to identify these settlements, they hoisted flags next to it. Thus those entire area got its name "yagashalakody".[citation needed]

As of the 2011 census, Chalakudy had a population of 114,901 with a density of 4,554 per km2. The male population of which is 55,276 while female population is 59,625. The children (0-6 age) population of Chalakudy UA is around 8.86% of total Chalakudy UA population which is lower than National Urban average of 10.93%. Total children in Chalakudy Urban region were 10,176 of which 5,225 were male and 4,951 female.[citation needed]
The literacy rate of Chalakudy Agglomeration is 96.42% which is higher than National Urban average of 85%. Literacy rate for male and female for Chalakudy stood at 97.53% and 95.41% respectively. Total literates in Chalakudy UA were 100,977 of which males were 48,815 and remaining 52,162 were females. The sex ratio of female to male in Chalakudy UA was found higher with figure of 1079 females against national urban average of 926 females per 1000 males. For children (0-6 age), girls were 948 per 1000 boys in Chalakudy Urban region against national average of 902 girls per 1000 boys.[citation needed]

Chalakudy Municipality came into existence in the year 1970. The municipality covering an area of 25.23 km2 is divided into 36 electoral wards. Chalakkudy is a Grade-II municipality.[1] Chalakudy is an assembly constituency & Lok Sabha constituency)]].[2]